Marble Surface

KYC

Know Your Customer

  1. How is the Buyer Paying? BCL, Cage Code, MT799, M199, DTCC or What?

  2. Who is the Buyer? Company, Individual, Buyer of Behalf, Group or Government?

  3. Has the Buyer Transacted on PPE before? How many times? What quantities?

  4. Is the Buyer planning to Flip Quick, Break Apart (into smaller lots) or Consume?

  5. Does the Buyer need to take over current Warehouses or Transport elsewhere?

  6. Is the Buyer familiar with Logistics? Does the Buyer know 1B is 15 Warehouses?

  7. How much does the Buyer Actually Need OTG (on the ground) and where?

  8. How close are you to the Buyer or Seller? One Step Away? Two? or Three? 

  9. The answers to these questions will determine how well you Know Your Customer.

Marble Surface

SOP

Standard Operating Procedures​

If you ask "What's the SOP" you look like an amature. It's always the same.

Fresh Paperwork. No Copies. No Photoshop. Date same day, Valid for 5 days.

Date Fresh Paperwork for tomorrow if Mon to Wed. Date Mon if Thurs to Sunday.

  1. LOI (Letter of Intent signed by Officer).

  2. LOA (Letter of Attestation signed by Attorney).

  3. ICPO (Irrevocable Corporate Purchase Order signed by Officer).

  4. Submission: Seller Due Diligence on Buyer (2 hours to 48 hours).

  5. A2A: (Seller Attorney to Buyer Attorney typically Two to Four Days).

  6. During A2A the Payment Method is Provided. Must be Green & Clean.

  7. All Good to Go: SGS, BOL, Lot Numbers, Location then Buyer Inspection.

  8. SPA: Concurrently with #7 the Sales and Purchase Agreement. 

  9. Close (Fund Seller, Mandates, Intermediaries via pre established method).

Marble Surface

FYI

Free Advice

Free advice is worth what you pay for it. 

  1. Notice I did not mention NCNDA or IMFPA in the SOP?

  2. Those things only mean anything to honest people, nothing to dishonest people.

  3. Yes of course you need those documents, but do not let them slow down the deal.

  4. If you want rewards in PPE, get the Mandates talking, then get out of the way.

  5. No one earns a penny protecting their turf or standing on a percentage. No one.

  6. Do you know anyone who has closed a deal? Yes. If you call me, then you do.

  7. Life in the Fast Lane is anything but easy. It's all day every day without a break.

  8. In the end, you will earn money if you work with people you trust, zero if not.

  9. PPE is like duck hunting: focus on one duck, pull the trigger, then focus on the next. 

Happy Hunting,

Richard Easton

© COPYRIGHT RICHARD EASTON 2020